GST notices based on UPI transactions: K'taka traders on warpath, official tells action as per law
GST
Dated:- 23-7-2025
PTI
Bengaluru, Jul 23 (PTI) Amid rising concerns among traders in Karnataka over the issuance of nearly 6,000 GST demand notices based on UPI transaction data, a top tax official has termed the action as within the framework of law.
\nTraders' bodies have called for a strike over the matter.
\nSpeaking to PTI, Meera Suresh Pandit, Joint Commissioner of Commercial Taxes, also clarified that notices are not final tax demands and the recipients have the right to respond with supporting documentation. If the reply is convincing or the goods and services are exempted under the GST Act, notices will be dropped, she added.
\nReacting to the issue of notices sent to traders based on UPI transactions, a number of traders associations in the state have given a call to the traders to boycott UPI transactions. They have also called for a strike on July 25.
\nResponding t<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ates that they may be liable to register under GST,” Pandit said, adding that notices were based only on preliminary data, not final determinations. = = = = = = = =<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nThe officer said the department is not aware whether the turnover is entirely exempted, partially taxable, or fully taxable. That is why the notice includes a proposal to register and pay applicable taxes, interest, and penalties.
\n“If the turnover is completely exempted from goods or services like tuition fees, the registration is not required. If the reply is convincing, the notice will be dropped and proceedings will close with a nil demand,” Pandit clarified.
\nShe also addressed doubts prevailing among the trading circles.
\n“Some innocent traders are being carried away, hoping every notice will be withdrawn. Some are being misled. But if they want relief within legal provisions, I request them to come to the department. We will guide them as per the law,” the Joint Commissioner said.
\n“Calling for a 'Bandh' will not serve the purpose.<\/p>\n